The Writer of a Put Option Is Obligated to Provide

question 15

True/False

The writer of a put option is obligated to provide the specified financial instrument at the price specified by the option contract if the owner exercises the option. ​

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Definitions:

Unconditioned Response

A natural, unlearned reaction to an unconditioned stimulus, such as salivation when food is presented, inherent in classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without needing prior learning.

Spontaneous Recovery

The return of a conditioned response that had vanished, following a pause where the conditioned stimulus was not presented.

Classical Conditioning

The conditioning process of repeatedly associating two stimuli together, such that a reaction first brought about by the second stimulus is later brought about by the first stimulus alone.